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Asking prices on Trade Me Property rising strongly in some regions, heading backwards in others

Property
Asking prices on Trade Me Property rising strongly in some regions, heading backwards in others

The average asking prices of homes in some regions have declined or posted only modest growth over the last year, while the Auckland market powers on, according to Trade Me Property.

The average asking price of Auckland homes listed for sale on the website in the three months to September was up 19.7% compared to the same period last year, while the average asking price of homes in all other regions of the country (excluding Auckland) was up just 3.8% over the same period.

Those regions where average asking prices rose significantly were Hawkes Bay, where it was nearly a third higher (32.6%) in the three months to September than the same period of last year, followed by Auckland (19.7%), Waikato (11.5%), West Coast (11.4%), Bay of Plenty (11.3%), Southland (8.3%) and Marlborough 6.6%).

Average asking prices in other regions either showed modest increases or declined compared to a year earlier.

In Wellington the average asking price was up just 0.7% compared to a year earlier, and in Christchurch it was up 3.6% for the year.

Regions where the average asking price declined compared to a year earlier were Gisborne (-21.4%), Otago (-10.8%), Taranaki (-10.2%), and Northland (-0.9%).

"Our largest city is charging on but it looks like the rest of the country has reached a plateau for now," Trade Me's Head of Property Nigel Jeffries said.

"There are some regions which are performing exceptionally well, but nationwide it's pretty quiet," he said.

Trade Me Property's monthly report said asking prices in Waikato and Bay of Plenty were being affected by Aucklanders investing in those regions, but average asking prices in Otago had declined in seven of the last eight months.

"Otago seems to be experiencing a very tough time with average asking prices for property in the region well below prices in September 2010," Jeffries said.

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14 Comments

Any fool who invests in Hawke's Bay will shed tears within 5 years time. Be warned.

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Any reason for this warning as i am in the dark here in the Waikato.
I am presuming it will still be okay to buy a house in Hawkes Bay just to put a roof over your families head :

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Hawke's Bay is not known for its job market. When the property cycle turns, places like Hawke's Bay will suffer the most. The bigger centres like Auckland, Wellington and Christchurch will recover after any pullback because it's where the jobs are and younger workers with families will always bring the market back up. Hawke's bay has very little to offer for a young working family.

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I think the key word there was 'invest'

As long as:
a. You intend to live there for a reasonable period of time (i.e. long enough to wait out any 'adjustments' in market prices)
b. Have a stable source of income

then I don't beleive you can go too far wrong not matter where you buy.

Property prices will always increase, it's just a matter of how long you're prepared to wait for them to do so.

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What those figures might very loosely and anedioctially suggest (because thats all those figures are) is that maybe it's not such a good time to do so though?

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Diversity, size and long term growth prospects in the north island go:

1. auckland
2. hamilton
3. tauranga
4. wellington
5. p.n
6. n.p/ Hawks bay
7. Rotorua
8.... not considered a going concern, population may not increase, rates may not meet expenses as they fall due

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Otago asking prices declining on trade me year on year , yet the average sales price has risen 10% year on year

http://attachedfiles.aunz.s3.amazonaws.com/23730/MarketUpdateFullReport…

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All I take from that is that Ray White had a better time than TradeMe did?

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Oh Jamin that is hilarious.... Fancy disproving a lot of inference with one little comment. good on yer.

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As i always make comment on... median asking or selling price in small markets with small 'sample sizes' mean +/- 20% margin of error... i.e depending on what actually sold or was listed that month will influence these sort of metrics immensely.

So pretty useless data in general.

If they normalised it to GV and said on average HB listing in september were 30% above GV then I'd sit up and take notice.

Media doesnt care about providing data that allows good decisions to be based on, they are not researchers, they dont have phd's, they only care about getting traffic and people reading their publications, thats what they get paid for...

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note they also found the colour by numbers too challenging, getting manawatu-wang colour wrong, should be green at +2.5%

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Hahah golden!

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Dunedin is booming

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yes the map does need some work lol

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